Airgain, Inc. (Nasdaq: AIRG), a leading provider of advanced
wireless connectivity solutions and technologies used to enable
high performance wireless networking across a broad range of
devices and markets, including consumer, enterprise, and
automotive, today reported financial results for the third quarter
ended September 30, 2021.
“We are excited about Airgain’s prospects for growth in 2022 and
beyond despite the transitory industry-wide global supply shortage,
which has impacted our top line revenue and gross margin,” said
Airgain’s President and Chief Executive Officer, Jacob Suen. “End
customer demand for our products remains very strong, especially in
our largest growth markets, Enterprise and Automotive. This follows
our strategy to grow our integrated wireless systems revenue with
our industrial IoT, traditional enterprise Wi-Fi systems, and our
AirgainConnect® platform products. We generated growth across each
of those markets during the first nine months of 2021 and expect
that growth to continue into 2022. We continue to invest in our
integrated wireless systems product portfolio as we navigate
through the volatile and dynamic macro environment. Our strategy to
pivot toward providing system solutions is working, and we remain
confident in our future and ability to create long-term shareholder
value."
Third Quarter 2021 Financial Highlights
- Sales of $15.5 million
- GAAP gross margin of 35.9%
- Non-GAAP gross margin of 36.5%
- GAAP operating expenses of $8.6 million
- Non-GAAP operating expenses of $6.8 million
- GAAP net loss of $3.1 million or $0.30 per share
- Non-GAAP net loss of $1.1 million or $0.11 per share
- Adjusted EBITDA of $(1.0) million
Third Quarter 2021 Financial Results
Sales for the third quarter of 2021 were $15.5 million, of which
$4.6 million was generated from the consumer market, $8.7 million
from the enterprise market and $2.2 million from the automotive
market. Sales decreased by 10.6%, or $1.8 million in the third
quarter of 2021 compared to $17.3 million in the second quarter of
2021. Consumer sales declined from the second quarter of 2021 by
$4.3 million primarily due to continuing weakness from the global
supply shortage impacting our ODM/OEM customers who provide
consumer products to our service provider end customers. Enterprise
product sales increased from the second quarter of 2021 by $2.5
million driven by the product ramp of industrial Internet of Things
(IoT) devices as well as the ramp of a Wi-Fi antenna solution sold
to a major enterprise customer. Automotive sales remained
relatively flat from the second quarter of 2021. Sales for the
third quarter of 2021 increased by 18.8%, or $2.4 million from
$13.0 million in the same year-ago period. The increase in sales
from the third quarter of 2020 was primarily due to sales of
industrial IoT products in the enterprise market and increased
sales of $0.3 million from the automotive market offset by a
decrease in sales of $5.8 million from the consumer market.
GAAP gross profit for the third quarter of 2021 was $5.5 million
compared to $7.3 million for the second quarter of 2021 and $6.0
million in the same year-ago period. Non-GAAP gross profit for the
third quarter of 2021 was $5.6 million compared to $7.4 million for
the second quarter of 2021 and $6.1 million in the same year-ago
period (see note regarding "Use of Non-GAAP Financial Measures,"
below for further discussion of this non-GAAP measure).
GAAP gross margin for the third quarter of 2021 was 35.9%,
compared to 42.2% for the second quarter of 2021 and 46.3% in the
same year-ago period. The decrease in gross margin compared to the
second quarter of 2021 was primarily due to changes in product mix
including increased sales of enterprise products which yield a
lower gross margin as well as increased production and freight
costs, primarily associated with the impact of the global supply
shortage and logistic delays within the global supply chain. The
decrease in gross margin compared to the same year-ago period was
primarily due to changes in the product mix including the sales of
industrial IoT devices with lower gross margins, higher production
and freight costs and higher amortization costs associated with the
NimbeLink acquisition. Non-GAAP gross margin for the third quarter
of 2021 was 36.5% compared to 42.8% for the second quarter of 2021
and 46.6% in the same year-ago period. The decrease in non-GAAP
gross margin from the second quarter of 2021 and the same year-ago
period was primarily due to the impact of ramping industrial IoT
revenue, higher production and freight costs and product mix (see
note regarding "Use of Non-GAAP Financial Measures," below for
further discussion of this non-GAAP measure).
Total GAAP operating expenses for the third quarter of 2021 were
$8.6 million, compared to $10.0 million for the second quarter of
2021 and $6.2 million in the same year-ago period. Operating
expenses were lower for the third quarter of 2021 compared to the
second quarter of 2021 due to the $1.6 million charge related to
the change in the fair value of contingent consideration associated
with the NimbeLink acquisition that was recognized in the second
quarter of 2021. The higher operating expenses for the third
quarter of 2021 compared to the same year-ago period were primarily
due to the NimbeLink acquisition which resulted in added headcount,
facilities and IT expenses as well as increased outsourced service
costs. Non-GAAP operating expenses for the third quarter of 2021
remained relatively flat compared to the second quarter of 2021.
Non-GAAP operating expenses for the third quarter of 2021 were $6.8
million compared to $5.5 million in the same year-ago period (see
note regarding "Use of Non-GAAP Financial Measures," below for
further discussion of this non-GAAP measure).
GAAP net loss for the third quarter of 2021 was $3.1 million or
$0.30 per share (based on 10.1 million shares), compared to a GAAP
net loss of $2.6 million or $0.26 per share (based on 10.0 million
shares) for the second quarter of 2021 and a GAAP net loss of $0.3
million or $0.03 per share (based on 9.7 million shares) in the
same year-ago period. The $0.5 million increase in net loss
compared to the second quarter of 2021 was due to lower gross
profit and higher income tax provision offset by lower operating
expenses. Non-GAAP net loss for the third quarter of 2021 was $1.1
million or $0.11 per share (based on 10.1 million shares), compared
to non-GAAP net income of $0.6 million or $0.05 per share (based on
10.8 million diluted shares) for the second quarter of 2021 and a
non-GAAP net income of $0.6 million or $0.06 per share (based on
10.1 million diluted shares) for the same year-ago period (see note
regarding "Use of Non-GAAP Financial Measures" below for further
discussion of this non-GAAP measure).
Adjusted EBITDA for the third quarter of 2021 was $(1.0)
million, compared to adjusted EBITDA of $0.7 million for the second
quarter of 2021 and in the same year-ago period (see note regarding
"Use of Non-GAAP Financial Measures" below for further discussion
of this non-GAAP measure).
First Nine Months 2021 Financial Highlights
- Sales of $50.1 million
- GAAP gross margin of 39.4%
- Non-GAAP gross margin of 40.6%
- GAAP operating expense of $27.4 million
- Non-GAAP operating expense of $20.6 million
- GAAP net loss of $5.4 million or $0.54 per share
- Non-GAAP net loss of $0.2 million or $0.02 per share
- Adjusted EBITDA of $0.2 million
First Nine Months 2021 Financial Results
Sales for the first nine months of 2021 were $50.1 million, of
which $23.8 million was generated from the consumer market, $19.2
million from the enterprise market and $7.1 million from the
automotive market. Sales increased by 40.5%, or $14.5 million in
the first nine months of 2021 compared to $35.7 million in the same
year-ago period. The increase in sales was primarily due to sales
recognized from industrial IoT devices as well as higher sales in
the automotive market and a ramp in enterprise Wi-Fi products.
GAAP gross profit for the first nine months of 2021 was $19.7
million compared to $16.7 million in the same year-ago period.
Non-GAAP gross profit for the first nine months of 2021 was $20.4
million compared to $16.8 million in the same year-ago period (see
note regarding "Use of Non-GAAP Financial Measures," below for
further discussion of this non-GAAP measure).
GAAP gross margin for the first nine months of 2021 was 39.4%,
compared to 46.9% in the same year-ago period. The decrease in
gross margin was primarily due to changes in the product mix
including the sales of industrial IoT devices with lower gross
margins, higher production and freight costs as well as an
inventory step-up adjustment and higher amortization costs
associated with the NimbeLink acquisition. Non-GAAP gross margin
for the first nine months of 2021 was 40.6%, compared to 47.2% in
the same year-ago period. Non-GAAP gross margin decreased 660 basis
points from the same year-ago period primarily due to change in
product mix including the sales ramp of industrial IoT devices
having lower gross margins and lower consumer sales that have
higher gross margins, and higher production and freight costs (see
note regarding "Use of Non-GAAP Financial Measures," below for
further discussion of this non-GAAP measure).
Total GAAP operating expenses for the first nine months of 2021
were $27.4 million, compared to $18.9 million in the same year-ago
period. The higher operating expenses were primarily due to the
NimbeLink acquisition which resulted in added headcount, facilities
and IT expenses as well as the change in fair value of contingent
consideration of $1.7 million related to the NimbeLink acquisition.
Non-GAAP operating expense for the first nine months of 2021 was
$20.6 million, compared to $16.5 million in the same year-ago
period (see note regarding "Use of Non-GAAP Financial Measures,"
below for further discussion of this non-GAAP measure).
GAAP net loss for the first nine months of 2021 was $5.4 million
or $0.54 per share (based on 10.0 million shares), compared to a
GAAP net loss of $2.2 million or $0.23 per share (based on 9.7
million shares) in the same year-ago period. The increase was due
to increased operating expenses, partially offset by increased
gross profit and a $2.2 million tax benefit. In connection with the
NimbeLink acquisition, deferred tax liabilities associated with the
intangible assets and a $2.3 million release of the valuation
allowance was recorded in the first quarter of 2021. Non-GAAP net
loss for the first nine months of 2021 was $0.2 million or $0.02
per share (based on 10.1 million shares), compared to non-GAAP net
income of $0.3 million or $0.03 per share (based on 9.9 million
diluted shares) in the same year-ago period (see note regarding
"Use of Non-GAAP Financial Measures" below for further discussion
of this non-GAAP measure).
Adjusted EBITDA for the first nine months of 2021 was $0.2
million, compared to $0.7 million for the same year-ago period (see
note regarding "Use of Non-GAAP Financial Measures" below for
further discussion of this non-GAAP measure).
Fourth Quarter 2021 Financial Outlook
- Sales are expected to be in the range of $13.5 million to $14.5
million
- GAAP gross margin is expected to be in the range of 32.5% to
34.5%
- Non-GAAP gross margin is expected to be in the range of 33% to
35%
- GAAP operating expense is expected to be $9.1 million, plus or
minus $0.1 million
- Non-GAAP operating expense is expected to be $7.0 million, plus
or minus $0.1 million
- GAAP net loss per share is expected to be $0.44 at
midpoint
- Non-GAAP net loss per share is expected to be $0.22 at
midpoint
- Adjusted EBITDA is expected to be $(2.1) million at
midpoint
Our financial outlook for the three months ending December 31,
2021, including reconciliations of GAAP to non-GAAP measures can be
found at the end of this press release.
Conference Call
Airgain management will hold a conference call today (Tuesday,
November 9, 2021) at 5:00 p.m. Eastern Time (2:00 p.m. Pacific
Time) to discuss financial results for the third quarter ended
September 30, 2021.
Airgain management will host the presentation, followed by a
question and answer period.
Date: Tuesday, November 9, 2021 Time: 5:00 p.m. Eastern Time
(2:00 p.m. Pacific Time)
Please follow the below web address to register for the Third
Quarter 2021 Conference Call. Upon registering, you will be
provided call details with a unique ID. There will be a reminder
email sent out to all registered participants.
Registration:
https://www.incommglobalevents.com/registration/q4inc/9027/airgain-q3-2021-earnings-call/
The conference call will be broadcast simultaneously and
available for replay via the investor relations section of the
company's website at www.airgain.com.
A replay of the call is available after 8:00 p.m. Eastern Time
on the same day until November 9, 2021.
U.S. replay dial-in: (866) 813-9403 or (929) 458-6194
International replay dial-in: +44 204 525 0658 Conference ID:
310211
About Airgain, Inc.
Airgain is a leading provider of advanced wireless connectivity
solutions and technologies used to enable high performance wireless
networking across a broad range of devices and markets, including
consumer, enterprise, and automotive. Airgain's mission is to
connect the world through advanced antenna systems and integrated
wireless solutions. Combining design-led thinking with testing and
development, Airgain's technologies are deployed in carrier, fleet,
enterprise, residential, private, government, and public safety
wireless networks and systems, including set-top boxes, access
points, routers, modems, gateways, media adapters, portables,
digital televisions, sensors, fleet, and asset tracking devices.
Through its pedigree in the design, integration, and testing of
high-performance embedded antenna technology, Airgain has become a
leading provider to the residential wireless local area networking,
also known as WLAN, market, supplying to leading carriers, original
equipment manufacturers, or OEMs, original design manufacturers, or
ODMs, and chipset manufacturers who depend on Airgain to achieve
their wireless performance goals. Airgain is headquartered in San
Diego, California, and maintains design and test centers in the
U.S., U.K., and China. For more information, visit airgain.com, or
follow Airgain on LinkedIn and Twitter.
Airgain and the Airgain logo are registered trademarks of
Airgain, Inc.
Forward-Looking Statements
Airgain cautions you that statements in this press release that
are not a description of historical facts are forward-looking
statements. These statements are based on the company’s current
beliefs and expectations. These forward-looking statements include
statements regarding our fourth quarter 2021 and 2022 financial
outlook, demand for our products and prospects for future growth
across our markets, including for AirgainConnect products, and our
ability to create long-term shareholder value. The inclusion of
forward-looking statements should not be regarded as a
representation by Airgain that any of our plans will be achieved.
Actual results may differ from those set forth in this press
release due to the risk and uncertainties inherent in our business,
including, without limitation: the market for our antenna products
is developing and may not develop as we expect; our operating
results may fluctuate significantly, including based on seasonal
factors, which makes future operating results difficult to predict
and could cause our operating results to fall below expectations or
guidance; supply constraints on our and our customer's ability to
obtain necessary components in our respective supply chains may
negatively affect our sales and operating results; the COVID-19
pandemic may continue to disrupt and otherwise adversely affect our
operations and those of our suppliers, partners, distributors and
ultimate end customers, and the overall global supply shortage and
logistics delays within the supply chain that our products are used
in, as well as adversely affecting the general U.S. and global
economic conditions and financial markets, and, ultimately, our
sales and operating results; our products are subject to intense
competition, including competition from the customers to whom we
sell and competitive pressures from existing and new companies may
harm our business, sales, growth rates, and market share; risks
associated with the performance of our products; our future success
depends on our ability to develop and successfully introduce new
and enhanced products for the wireless market that meet the needs
of our customers, including our ability to transition to provide a
more diverse solutions capability; we sell to customers who are
price conscious, and a few customers represent a significant
portion of our sales, and if we lose any of these customers, our
sales could decrease significantly; we rely on a few contract
manufacturers to produce and ship all of our products, a single or
limited number of suppliers for some components of our products and
channel partners to sell and support our products, and the failure
to manage our relationships with these parties successfully could
adversely affect our ability to market and sell our products; if we
cannot protect our intellectual property rights, our competitive
position could be harmed or we could incur significant expenses to
enforce our rights; and other risks described in our prior press
releases and in our filings with the Securities and Exchange
Commission (SEC), including under the heading “Risk Factors” in our
Annual Report on Form 10-K and any subsequent filings with the SEC.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof
and we undertake no obligation to revise or update this press
release to reflect events or circumstances after the date hereof.
All forward-looking statements are qualified in their entirety by
this cautionary statement, which is made under the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995.
Note Regarding Use of Non-GAAP Financial Measures
To supplement our condensed financial statements presented in
accordance with U.S. generally accepted accounting principles
(GAAP), this earnings release and the accompanying tables and the
related earnings conference call contain certain non-GAAP financial
measures, including adjusted earnings before interest, taxes,
depreciation, amortization (Adjusted EBITDA), non-GAAP net income
(loss) attributable to common stockholders (non-GAAP net income
(loss)), non-GAAP net income (loss) per (basic or diluted) share
(non-GAAP EPS), non-GAAP operating expense, non-GAAP gross profit
and non-GAAP gross margin. We believe these financial measures
provide useful information to investors with which to analyze our
operating trends and performance.
In computing Adjusted EBITDA, non-GAAP net income (loss), and
non-GAAP EPS, we exclude stock-based compensation expense, which
represents non-cash charges for the fair value of stock awards;
other income as well as interest income offset by interest expense;
depreciation and/or amortization; change in the fair value of
contingent consideration, acquisition-related expenses,
amortization of inventory step-up and provision (benefit) for
income taxes. In computing non-GAAP operating expense, we exclude
stock-based compensation expense, amortization of intangibles,
change in the fair value of contingent consideration and
acquisition-related expenses. In computing non-GAAP gross profit
and non-GAAP gross margin, we exclude stock-based compensation
expense, amortization of inventory step-up and amortization of
intangible assets. Because of varying available valuation
methodologies, subjective assumptions, and the variety of equity
instruments that can impact a company’s non-cash operating
expenses; we believe that providing non-GAAP financial measures
that exclude non-cash expense allows for meaningful comparisons
between our core business operating results and those of other
companies, as well as providing us with an important tool for
financial and operational decision making and for evaluating our
own core business operating results over different periods of time.
Management considers these types of expenses and adjustments, to a
great extent, to be unpredictable and dependent on a significant
number of factors that are outside of our control and are not
necessarily reflective of operational performance during a
period.
Our non-GAAP measures may not provide information that is
directly comparable to that provided by other companies in our
industry, as other companies in our industry may calculate non-GAAP
financial results differently, particularly related to
non-recurring, unusual items. Our Adjusted EBITDA, non-GAAP net
income (loss), non-GAAP EPS, non-GAAP operating expense, non-GAAP
gross profit and non-GAAP gross margin are not measurements of
financial performance under GAAP and should not be considered as an
alternative to operating or net income or as an indication of
operating performance or any other measure of performance derived
in accordance with GAAP. We do not consider these non-GAAP measures
to be a substitute for, or superior to, the information provided by
GAAP financial results. Reconciliations with specific adjustments
to GAAP results and outlooks are provided at the end of this
release.
Airgain, Inc.
Condensed Consolidated Balance
Sheets
(in thousands, except par
value)
(Unaudited)
September 30,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
18,954
$
38,173
Trade accounts receivable, net
10,351
4,782
Inventory
6,546
1,016
Prepaid expenses and other current
assets
1,499
1,462
Total current assets
37,350
45,433
Property and equipment, net
2,698
2,377
Leased right-of-use assets
2,840
—
Goodwill
10,845
3,700
Intangible assets, net
14,985
3,168
Other assets
474
249
Total assets
$
69,192
$
54,927
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
5,891
$
2,975
Accrued compensation
1,753
2,655
Accrued liabilities and other
2,187
1,187
Short-term lease liabilities
864
—
Deferred purchase price liabilities
8,346
—
Current portion of deferred rent
obligation under operating lease
—
39
Total current liabilities
19,041
6,856
Deferred tax liability
103
58
Long-term lease liabilities
2,274
—
Deferred rent obligation under operating
lease
—
271
Total liabilities
21,418
7,185
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in
capital, par value $0.0001, 200,000 shares authorized; 10,636
shares issued and 10,095 shares outstanding at September 30, 2021;
and 10,318 shares issued and 9,784 shares outstanding at December
31, 2020
105,926
100,356
Treasury stock, at cost: 541 shares at
September 30, 2021 and 534 shares at December 31, 2020.
(5,364
)
(5,267
)
Accumulated deficit
(52,788
)
(47,347
)
Total stockholders’ equity
47,774
47,742
Total liabilities and stockholders’
equity
$
69,192
$
54,927
Airgain, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per
share data)
(Unaudited)
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
2021
2021
2020
2021
2020
Sales
$
15,455
$
17,297
$
13,010
$
50,129
$
35,672
Cost of goods sold
9,909
9,998
6,981
30,387
18,924
Gross profit
5,546
7,299
6,029
19,742
16,748
Operating expenses:
Research and development
2,698
2,726
2,231
8,130
6,873
Sales and marketing
2,484
2,489
1,559
7,412
4,477
General and administrative
3,307
3,261
2,439
10,201
7,506
Change in fair value of contingent
consideration
103
1,557
—
1,660
—
Total operating expenses
8,592
10,033
6,229
27,403
18,856
Loss from operations
(3,046
)
(2,734
)
(200
)
(7,661
)
(2,108
)
Other expense (income):
Interest income, net
(6
)
(7
)
(23
)
(21
)
(194
)
Other expense
(1
)
9
—
15
11
Total other income
(7
)
2
(23
)
(6
)
(183
)
Loss before income taxes
(3,039
)
(2,736
)
(177
)
(7,655
)
(1,925
)
Provision (benefit) for income taxes
30
(127
)
84
(2,214
)
274
Net loss
$
(3,069
)
$
(2,609
)
$
(261
)
$
(5,441
)
$
(2,199
)
Net income loss per share:
Basic
$
(0.30
)
$
(0.26
)
$
(0.03
)
$
(0.54
)
$
(0.23
)
Diluted
$
(0.30
)
$
(0.26
)
$
(0.03
)
$
(0.54
)
$
(0.23
)
Weighted average shares used in
calculating income (loss) per share:
Basic
10,082
10,026
9,710
9,993
9,694
Diluted
10,082
10,026
9,710
9,993
9,694
Airgain, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(Unaudited)
Nine months ended September
30,
2021
2020
Cash flows from operating
activities:
Net loss
$
(5,441
)
$
(2,199
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation
389
348
Loss on disposal of property and
equipment
—
11
Amortization of intangible assets
2,248
475
Amortization of premium on investments,
net
—
49
Stock-based compensation
3,004
1,956
Change in fair value of contingent
consideration
1,660
—
Deferred tax liability
(2,285
)
(8
)
Changes in operating assets and
liabilities:
Trade accounts receivable
(4,442
)
3,474
Inventory
(3,859
)
116
Prepaid expenses and other current
assets
104
(120
)
Other assets
(31
)
—
Accounts payable
2,217
(756
)
Accrued compensation
(1,041
)
(433
)
Accrued liabilities and other
568
564
Lease liabilities
(12
)
—
Net cash provided by (used in) operating
activities
(6,921
)
3,477
Cash flows from investing
activities:
Cash paid for acquisition, net of cash
acquired
(14,185
)
—
Purchases of available-for-sale
securities
—
(753
)
Maturities of available-for-sale
securities
—
20,199
Purchases of property and equipment
(542
)
(560
)
Net cash provided by (used in) investing
activities
(14,727
)
18,886
Cash flows from financing
activities:
Repurchases of common stock
(97
)
(608
)
Proceeds from issuance of common stock,
net
2,526
1,018
Net cash provided by financing
activities
2,429
410
Net increase (decrease) in cash, cash
equivalents and restricted cash
(19,219
)
22,773
Cash, cash equivalents, and restricted
cash; beginning of period
38,348
13,197
Cash, cash equivalents, and restricted
cash; end of period
$
19,129
$
35,970
Supplemental disclosure of cash flow
information:
Taxes paid
$
89
$
137
Supplemental disclosure of non-cash
investing and financing activities:
Right-of-use assets recorded upon adoption
of ASC 842
$
3,199
$
—
Leased liabilities recorded upon adoption
of ASC 842
$
3,519
$
—
Accrual of property and equipment
$
21
$
—
Cash and cash equivalents
$
18,954
$
35,795
Restricted cash included in other
assets
175
175
Total cash, cash equivalents, and
restricted cash
$
19,129
$
35,970
Airgain, Inc.
Sales by Target Market
(in thousands)
(Unaudited)
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
Target
Market
2021
2021
2020
2021
2020
Consumer
$
4,599
$
8,905
$
10,381
$
23,800
$
27,489
Enterprise
8,698
6,152
$
794
$
19,231
$
2,575
Automotive
2,158
2,240
$
1,835
$
7,098
$
5,608
Total sales
$
15,455
$
17,297
$
13,010
$
50,129
$
35,672
Airgain, Inc.
Stock-Based Compensation
Expense by Department
(in thousands)
(Unaudited)
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
2021
2021
2020
2021
2020
Cost of goods sold
$
1
$
1
$
—
$
3
$
—
Research and development
211
176
124
591
425
Sales and marketing
230
213
101
658
291
General and administrative
626
618
409
1,752
1,240
Total stock-based compensation expense
$
1,068
$
1,008
$
634
$
3,004
$
1,956
Airgain, Inc.
(in thousands)
(Unaudited)
Reconciliation of GAAP to
non-GAAP Gross Profit
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
2021
2021
2020
2021
2020
Gross profit
$
5,546
$
7,299
$
6,029
$
19,742
$
16,748
Stock-based compensation
1
1
—
3
—
Amortization of intangible assets
93
101
32
276
99
Amortization of inventory step-up
—
—
—
352
—
Non-GAAP gross profit
$
5,640
$
7,401
$
6,061
$
20,373
$
16,847
Reconciliation of GAAP to
non-GAAP Gross Margin
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
2021
2021
2020
2021
2020
Gross margin
35.9
%
42.2
%
46.3
%
39.4
%
46.9
%
Stock-based compensation
0.0
%
0.0
%
0.0
%
0.0
%
0.0
%
Amortization of intangible assets
0.6
%
0.6
%
0.3
%
0.5
%
0.3
%
Amortization of inventory step-up
0.0
%
0.0
%
0.0
%
0.7
%
0.0
%
Non-GAAP gross margin
36.5
%
42.8
%
46.6
%
40.6
%
47.2
%
Reconciliation of GAAP to
non-GAAP Operating Expenses
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
2021
2021
2020
2021
2020
Operating expenses
$
8,592
$
10,033
$
6,229
$
27,403
$
18,856
Stock-based compensation expense
(1,067
)
(1,007
)
(634
)
(3,001
)
(1,956
)
Amortization of intangible assets
(672
)
(666
)
(121
)
(1,972
)
(376
)
Change in fair value of contingent
consideration
(103
)
(1,557
)
—
(1,660
)
—
Acquisition-related expenses
—
—
—
(189
)
—
Non-GAAP operating expenses
$
6,750
$
6,803
$
5,474
$
20,581
$
16,524
Airgain, Inc.
(in thousands, except per
share data)
(Unaudited)
Reconciliation of GAAP to
non-GAAP Net Income (Loss)
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
2021
2021
2020
2021
2020
Net loss
$
(3,069
)
$
(2,609
)
$
(261
)
$
(5,441
)
$
(2,199
)
Stock-based compensation expense
1,068
1,008
634
3,004
1,956
Amortization of intangible assets
765
767
153
2,248
475
Change in fair value of contingent
consideration
103
1,557
—
1,660
—
Acquisition-related expenses
—
—
—
189
—
Amortization of inventory step-up
—
—
—
352
—
Other income
(6
)
(7
)
(23
)
(21
)
(183
)
Provision (benefit) for income taxes
30
(127
)
84
(2,214
)
274
Non-GAAP net income (loss) attributable to
common stockholders
$
(1,109
)
$
589
$
587
$
(223
)
$
323
Non-GAAP net income (loss) per share:
Basic
$
(0.11
)
$
0.06
$
0.06
$
(0.02
)
$
0.03
Diluted
$
(0.11
)
$
0.05
$
0.06
$
(0.02
)
$
0.03
Weighted average shares used in
calculating non-GAAP net income (loss) per share:
Basic
10,082
10,026
9,710
9,993
9,694
Diluted
10,082
10,786
10,069
9,993
9,929
Reconciliation of Net Loss to
Adjusted EBITDA
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
2021
2021
2020
2021
2020
Net income (loss)
$
(3,069
)
$
(2,609
)
$
(261
)
$
(5,441
)
$
(2,199
)
Stock-based compensation expense
1,068
1,008
634
3,004
1,956
Depreciation and amortization
896
894
259
2,637
823
Change in fair value of contingent
consideration
103
1,557
—
1,660
—
Amortization of inventory step-up
—
—
—
352
—
Acquisition-related expenses
—
—
—
189
—
Interest income
(6
)
(7
)
(23
)
(21
)
(194
)
Provision (benefit) for income taxes
30
(127
)
84
(2,214
)
274
Adjusted EBITDA
$
(978
)
$
716
$
693
$
166
$
660
Q4-2021 Financial
Outlook
Reconciliations of GAAP to
Non-GAAP Gross Margin, Operating Expense, Net Loss, EPS and to
Adjusted EBITDA
For the Three Months Ended
December 31, 2021
(in millions, except per share
data)
Gross Margin
Reconciliation:
GAAP gross margin
33.5
%
Amortization
0.5
%
Non-GAAP gross margin
34.0
%
Operating Expense
Reconciliation:
EPS Reconciliation(1):
GAAP operating expenses
$
9.12
GAAP EPS
$
(0.44
)
Stock-based compensation
(1.09
)
Stock-based compensation
0.11
Amortization
(0.67
)
Amortization
0.07
Change in fair value of contingent
consideration
(0.36
)
Change in fair value of contingent
consideration
0.04
Non-GAAP operating expenses
$
7.00
Non-GAAP EPS
$
(0.22
)
Net Loss
Reconciliation
Adjusted EBITDA
Reconciliation
GAAP net loss
$
(4.48
)
GAAP net loss
$
(4.48
)
Stock-based compensation
1.09
Stock-based compensation
1.09
Amortization
0.76
Depreciation and amortization
0.90
Change in fair value of contingent
consideration
0.36
Change in fair value of contingent
consideration
0.36
Interest income, net
(0.01
)
Interest income, net
(0.01
)
Provision for income taxes
0.05
Provision for income taxes
0.05
Non-GAAP net loss
$
(2.23
)
Adjusted EBITDA
$
(2.09
)
(1) Amounts are based on 10.2 million
weighted average shares outstanding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211109006413/en/
Airgain Contact David B. Lyle Chief Financial Officer
Airgain, Inc. investors@airgain.com
Airgain Investor Contact Matt Glover Gateway Group, Inc.
+1 949 574 3860 AIRG@gatewayir.com
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